The Shadow Chancellor made the comments in reaction to the 2014 Autumn Statement(Reuters)

The government has failed to make millions of people better off and George Osborne's promise to balance the UK's books during this parliament is "in tatters", according to Ed Balls.

Labour's Shadow Chancellor made the comments after Osborne delivered his 2014 Autumn Statement to the House of Commons.

Balls argued that working people, on average, are now £1,600 ($2,510, €2,036) a year worse off than they were in 2010 and that someone in full-time work is £2,000 a year worse off.

The Labour front bench also said that Osborne had failed to cut the country's budget deficit and get debt falling.

"Back in 2010, the Chancellor and the Prime Minister pledged to balance the budget by the end of this Parliament and see the national debt falling. Today that promise lies in tatters," the Shadow Chancellor said.

Balls added: "The squeeze on living standards has not only hit family budgets, it has also led to a shortfall in tax revenues.

"The lesson of this Autumn Statement is that a plan to balance the books will only work if it puts good jobs, rising living standards and stronger growth at its heart."